On October 1, 2019, the Japanese consumption tax (JCT) rate will be raised from 8% to 10%. Taxable sales and taxable purchases conducted on or after that date are generally subject to JCT at 10%. However, transactions of specific items will remain subject to JCT at 8%. This is mandatory and not optional. Continue reading
Read HERE to find out more or feel free to contact my colleague of PwC Japan: Takashi Murakami (email@example.com) / Kataku Kimu (firstname.lastname@example.org).
Bildquelle: Bernd Laprecht / pixelio.de
You can access the English version of the document intended for foreign businesses HERE. The NTA also published some further documents HERE on this topic, however all these documents “are used only for explanations”. Continue reading
The Japanese Diet which requires non-resident electronic service providers to register for Japanese consumption tax (JCT) as of 1 October 2015 passed the legislation. Continue reading
As previously reported, the Japanese government plans to tax the supply of electronic services by non-established service providers, as of 1 October 2015. The proposal is expected to pass through the legislation this spring.
According to the draft legislation the place of supply of electronic services will change from the origin principle (i.e. where the supplier is established) to the destination principle (i.e. to the place where the recipient is located). Continue reading
Currently the B2C supply of services by a non-established company to Japanese customers is not subject to Japanese consumption tax (JCT). This provides competitive advantage to non-established service providers of electronic services compared to Japanese businesses. Since the JCT rate increased from 5% to 8%, with another increase to 10% estimated from 1 October 2015 this advantage is increasing further. Continue reading